Shawn,
Yes, sorry for the confusion, I am new so terminology sometimes confuses me. I have done as you have said and it works :) I just have to get some nice normals for my terrain now, I tested it with the good ols rock.tga with it's normal map.
@IXciD,
Thanks, it's nice to know people read the blog, glad my stuff helps. :) Once I have the normal mapped terrain finished I will put it up on the blog.